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Earnings Results under Review: NeoGenomics, Inc. (NASDAQ: NEO)

Shares of NeoGenomics, Inc. (NASDAQ: NEO) closed with decline of -1.21% to $13.11. Recent traded volume was 479,596 million shares versus to it an average volume of 443,445 shares. The company holds 80.62 million shares outstanding and market cap of 1.057 billion. The stock’s day range was recorded between a low of $13.01 and a high $13.58. The one year high of the company is $14.18 and the one year low is $7.08.

NeoGenomics, Inc. (NEO) recently stated its results for the first quarter 2018.

First Quarter 2018 Highlights:

  • 10% raise in consolidated revenue; 14% not including PathLogic
  • 15% raise in clinical genetic testing volume(1)
  • 43% raise in Pharma Services revenue; 90% raise in Pharma Services backlog
  • $16M raise in Cash Flow from Operations
  • 40% raise in Adjusted EBITDA(2) with 44% incremental margin

Consolidated revenues for the first quarter of 2018 were $63.4M, an raise of 10.4% over the same period in 2017. After adjusting 2017 results for the divestiture of PathLogic, revenue growth was 13.6%. Clinical genetic test volume(1) raised by 14.9% year over year. Average revenue per clinical genetic test (“Revenue per Test”) reduced by 3.4% to $319, primarily Because of changes in Medicare reimbursement and regulation.

Consolidated gross profit improved by $4.4M, or 19.0%, to $27.3M and consolidated gross margin improved by about 310 basis points year-over-year to 43.0%. Gross margin improvement was driven by productivity gains and cost efficiencies that resulted in a 6.6% reduction in average cost-of-goods-sold per clinical genetic test (“Cost per Test”) and margin expansion in the Pharma Services business driven by economies of scale.

Consolidated operating expenses raised by $1.3M, or 5.4%, from the previous year, primarily Because of raised investments in sales and marketing.

Net income in Quarter 1 was $0.6M contrast to a net loss of $1.2M in the previous year’s first quarter. GAAP earnings per share accessible to ordinary stockholders, after deducting non-cash preferred stock charges, was a loss of $0.03 in Quarter 1 contrast to a loss of $0.05 per share in the previous year’s first quarter.

2018 Financial Outlook:

NeoGenomics maintained its full year 2018 guidance, initially issued on February 21, 2018. The Company expects consolidated revenue to be in the range of $260 to $272M, including the adoption of ASC 606 (which equates to a range of $275M to $288M previous to the application of ASC 606) and GAAP Diluted EPS to be a loss of ($0.13) to ($0.08) per share. The Company expects Adjusted EBITDA(2) to be in the range of $39 to $43M and Adjusted Diluted EPS(2) to be $0.15 – $0.20 per share.

Please also refer to the tables reconciling forecasted Adjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA to their closest GAAP equivalents in the section of this report entitled “Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures.”

The stock’s RSI amounts to 56.77. In the liquidity ratio analysis; NEO debt to equity ratio was 0.59 while current ratio was 2.00. The company has the institutional ownership of 86.20% while the Beta factor was 0.57.

Joel Stalter

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I am Joel Stalter and I give “Analysts Media” an insight into the most recent news hitting the “Healthcare” sector in Wall Street. I have been an independent financial adviser for over 12 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address:  4216 Willow Greene Drive, Montgomery, AL 36109 Email: Joel@analystsmedia.com Contact Number:  (1) 334-272-4253